Sri Lanka’s maize policy stalls poultry sector, says Ceylon Grain Elevators 

SRI LANKA – Ceylon Grain Elevators PLC (CGE), one of Sri Lanka’s leading poultry and feed manufacturers, has sounded the alarm over mounting challenges posed by strict maize import restrictions.

CGE warns that the country’s poultry industry is being held back from seizing export opportunities due to a shortage of quality raw materials.

In its 2024 Annual Report, CGE, which is majority-owned by Singapore-based Prima Group, emphasised that despite the industry’s potential to tap into international markets, the lack of timely maize import permits, coupled with high tariffs, is severely disrupting feed production.

 “Export market opportunities present significant growth potential for the poultry industry,” the company told shareholders, adding that resolving raw material constraints is critical for unlocking this potential.

Maize accounts for a significant portion of poultry feed, yet Sri Lanka’s local cultivation fulfils less than 50% of national demand.

CGE noted that the gap has widened due to a tightly controlled permit system, where import licenses are issued at the last minute, creating costly delays, especially during times of regional shortages.

“Locally cultivated maize continued to fall short, compounded by tightly regulated imports. This posed considerable difficulties in ensuring uninterrupted production capacity,” the company said.

Adding to the challenge is the poor quality of local maize, often linked to substandard post-harvest handling and drying techniques that promote aflatoxin contamination.

Aflatoxins, a type of toxic fungus, can compromise the nutritional and safety standards of poultry feed, forcing CGE to reformulate its products at a higher cost.

“Locally grown maize often came at a higher cost but lower quality consistency than imported maize,” CGE stated.

“As a result, to maintain optimal nutritional standards in poultry feed, the Group had to incorporate alternative feed formulations to enhance product quality.”

The problem is rooted in a self-sufficiency policy adopted during the Rajapaksa era, which imposed high tariffs on maize imports to protect local farmers.

While the goal was to encourage domestic cultivation, it inadvertently created a monopoly for collectors who sold low-grade maize at inflated prices, raising input costs for feed millers and, ultimately, prices for consumers.

With no competitive pressure from imports, local maize suppliers have little incentive to improve practices or invest in quality control.

Meanwhile, emergency maize imports, approved only under crisis conditions, further drive up international prices and disrupt supply chains.

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